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Gold analysis for May 20 , 2016

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Since our previous analysis, gold has been downwards. As I expected, the price tested the level of $1,243.62 in a high volume. According to the 15M time frame, I found weakness and resistance cluster at the price of $1,257.50. There are few bullish bars in a high volume but with weak close, which is a sign that sellers are in control. All bullish bars that I marked on the chart closed in the middle, which is a sign of weakness. Intraday downward target is set at the price of $1,252.30 and $1,244.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,259.55

R2: 1,262.90

R3: 1,267.70

Support levels:

S1: 1,250.30

S2: 1,247.30

S3: 1,242.50

Trading recommendations for today: Downward pressure on the market. Watch for selling opportunities on pullbacks.

The material has been provided by InstaForex Company - www.instaforex.com